SHANGHAI: A rising trend in property values in China is no longer a certainty as “unprecedented” state housing price controls come into effect, state media quoted a central bank adviser as saying.
China’s housing authorities have pledged to stabilise land and home prices in 2019 and ramp up the supply of rental housing to tackle home-affordability issues, state television reported in December.
The measures should be enough to ensure house prices as a whole would be stable over the next 10 to 15 years, the official China Securities Journal quoted Sheng Songcheng, a People’s Bank of China adviser and dean of the research institute of China Chief Economist Forum, as saying.
Following a furious boom, China has gradually tightened regulatory controls over its massive property market from mid-2016.
But home prices have continued to go up, even as economic growth slows, and managing risks in the sector remains a priority.
This round of control measures on the real estate sector is unprecedented, and the expectation that home prices would forever go up is now coming to a critical point, Sheng remarked at the 2019 annual meeting of the China Chief Economist Forum.
Sheng’s comments come as some smaller cities ease property controls in a test of the central government’s resolve as growth slows in the world’s second-largest economy.
Sheng said stability or slight declines in China’s housing prices was a good thing, and the government would steadfastly continue to impose regulatory curbs on the sector. — Reuters